Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

btec business > personal and business finance - learning aim A. > Flashcards

personal and business finance - learning aim A. Flashcards

1
Q

what are the four functions of money?

A

unit of account, means of exchange, store of value, legal tender.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

explain unit of account.

A

this refers to anything that allows the value of something to be expressed in an understandable way.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

explain means of exchange.

A

money allows goods and services to be traded without the need for a barter system.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

explain store of value.

A

this can refer to any assets whose ‘value’ can be used now or in the future. this means people can save now to fund at a later date.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

explain legal tender.

A

a legally recognised form of payment that is backed by the government, e.g. cash.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

how is the role of money influenced?

A

personal attitudes, culture, life events, external influences & trends, interest rates.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

explain how personal attitudes influence the role of money.

A

people all have their own attitudes towards money, some save some borrow. some use it for risk and some for reward.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

explain how culture influences the role of money.

A

your religious beliefs or principles may shape the role that money plays in your life and how you view and use it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

explain how life events influence the role of money.

A

importance of money may change depending on life events. e.g. being made redundant, getting married, having kids.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

explain how interest rated influence the role of money.

A

these may impact what you decide to do with money. low rates are good for borrowing but high rates are good for saving.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

explain how external influences and trends influence the role of money.

A

the state of the economy and the jobs market may change the role of money. these external influences are out of your control but still impact the role that money plays.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what are the financial needs of a child?

A

children have limited needs. they get money from parents and they spend it on non-essentials.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what are the financial needs of an adolescent?

A

they want independence and are less reliant on their parents but still ask them for money. they may look for a job and they may receive cash as gifts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are the financial needs of a young adult?

A

they may be starting uni or going into a career. they will be buying cars and homes. may have student loan, a mortgage and car finance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are the financial needs of a middle aged person?

A

they will be supporting their family, trying to improve lifestyle, saving for pension. paying mortgage, may have high expenses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are the financial needs of an old aged person?

A

they will have fewer dependents and they may downsize. they won’t have any mortgage payments and they will have income from their pension, not a salary.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

why plan expenditure?

A

to avoid getting into debt.
to set financial targets and goals.
to remain solvent.
to avoid legal action or repossession.
to manage money to fund purchases.
to avoid bankruptcy.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

how many methods of payments are there?

A

14.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

explain cash.

A

physical notes and coins. can get in a variety of amounts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what are the advantages of using cash as a method of payment?

A

it is easy to budget.
it is widely accepted.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what are the disadvantages of using cash as a method of payment?

A

it is easy to lose and steal.
it is not good for large amounts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

explain credit.

A

you are provided with a credit limit that is not your money. you will have t pay this back at the end of the month.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what are the advantages of using credit as a method of payment?

A

there is a period of interest free credit.
it can be used online.
they sometimes offer loyalty schemes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what are the disadvantages of using credit as a method of payment?

A

you have a set amount of credit.
it charges on cash withdrawals.
interest can be charged.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

explain debit.

A

it deducts money directly from a current account to pay for something.

26
Q

what are the advantages of using debit as a method of payment?

A

it is secure.
there is a low risk of theft.
it is widely accepted.

27
Q

what are the disadvantages of using debit as a method of payment?

A

you may overspend.
you can go into an overdraft.
there is minimum spend limits.

28
Q

explain cheque.

A

this is a written order to a bank to pay an amount from one account to another.

29
Q

what are the advantages of using a cheque as a method of payment?

A

it is safe.
it is good for large transactions.

30
Q

what are the disadvantages of using a cheque as a method of payment?

A

cheques may bounce.
there can be errors made when writing.

31
Q

explain contactless.

A

where you transfer money by tapping the card on a terminal.

32
Q

what are the advantages of using contactless as a method of payment?

A

it is popular.
it is quick.
it is safe.

33
Q

what are the disadvantages of using contactless as a method of payment?

A

you can only do small amounts.
it is not available everywhere.

34
Q

explain mobile banking.

A

transactions made by using a mobile device.

35
Q

what are the advantages of using mobile banking as a method of payment?

A

it is convenient.
it is secure.
24/7 access.

36
Q

what are the disadvantages of using mobile banking as a method of payment?

A

it has limited features compared to internet banking.

37
Q

explain direct debit.

A

when you set up a regular fixed payment to be taken at a certain time.

38
Q

what are the advantages of using direct debit as a method of payment?

A

it is easy for budgeting.
it is easy to set up and cancel.

39
Q

what are the disadvantages of using direct debit as a method of payment?

A

payments will continue until cancelled.

40
Q

explain standing order.

A

an instruction from you to your bank or building society.

41
Q

what are the advantages of using a standing order as a method of payment?

A

it is quick and easy.
it is convenient for bills.

42
Q

what are the disadvantages of using a standing order as a method of payment?

A

it constantly needs monitoring.

43
Q

explain electronic transfer.

A

payment made electronically from one account to another.

44
Q

what are the advantages of using electronic transfer as a method of payment?

A

it is free.
it is fast.
it is easy.

45
Q

what are the disadvantages of using electronic transfer as a method of payment?

A

there is a risk of loss if incorrect.
could transfer the money to the wrong person.

46
Q

explain a pre-paid card.

A

you load them up with money and top them up when they run out.

47
Q

what are the advantages of using a pre-paid card as a method of payment?

A

avoids overspending.
it is a good way of controlling spending.

48
Q

what are the disadvantages of using a pre-paid card as a method of payment?

A

there is no protection if you lose the card.

49
Q

explain a charge card.

A

buy now, pay later. you can pay off in full every month.

50
Q

what are the advantages of using a charge card as a method of payment?

A

there is no need to carry cash.
you can get additional perks.

51
Q

what are the disadvantages of using a charge card as a method of payment?

A

there is an annual fixed fee.

52
Q

explain a store card.

A

these are issues by retail outlets so customers can purchase their products on credit.

53
Q

what are the advantages of using store cards as a method of payment?

A

there is a short period of interest free credit.

54
Q

what are the disadvantages of using a store card as a method of payment?

A

it can only be used in specific shops.expla

55
Q

explain BACS.

A

BACS stand for: bankers automated clearing service. it is mainly used for direct debits and direct credits from organisations.

56
Q

what are the advantages of using BACS as a method of payment?

A

there is no additional costs.

57
Q

what are the disadvantages of using BACS as a method of payment?

A

the service is not offered by all banks.

58
Q

explain CHAPS.

A

CHAPS stands for: clearing house automated payment systems. it allows payments to UK accounts and they are guaranteed to arrive that same day.

59
Q

what are the advantages of using CHAPS as a method of payment?

A

same day transfer.

60
Q

what are the disadvantages of using CHAPS as a method of payment?

A

there is a fixed charge.

btec business (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions